Leo Varadkar (Dublin West, Fine Gael)
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Question 203: To ask the Tánaiste and Minister for Finance when he will commence section 101 of the Finance Act 2007 to remove the stamp duty loophole relating to sub-sales; and if he will make a statement on the matter. [1159/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume that the Deputy is referring to Section 110 of the Finance Act 2007.

This made provision for a charge to stamp duty where licence agreements and other such arrangements are used. Licence agreements and the other arrangements will come within the terms of the section where the landowner receives a payment amounting to 25% or more of the market value or consideration concerned.

Section 110 is subject to a commencement order and I have to consider the state of the property market before the provision comes into effect to ensure that it does not have an unforeseen negative effect on the market. For this reason I commissioned an independent study of the potential effects that such a provision may have on the market.

The study has been received by me and I have decided, in line with the recommendations in the study, not to commence this provision at this time.